Suchergebnisse

Purpose– This paper aims to investigate the following two research questions: Do corporate social responsibility (CSR) investments enhance a firm's economic performance? Does the firm's economic performance influence CSR investments? That is, the bidirectional relationship between CSR investments and economic performance.Design/methodology/approach– This paper analyzes three types of CSR investments (environmental, labor-related and social investments) using a simultaneous equations model with a data set of 185 Japanese firms.Findings– Environmental investments reduce economic performance, labor-related investments do not significantly affect economic performance and social investments increase economic performance. Moreover, strong economic performance decreases environmental investments but increases social investments. Labor-related investments are chosen considering economic performance in both the present and previous terms.Practical implications– For managers, environmental and labor-related investments are not effective for improving economic performance. However, eradicating them completely might harm corporate reputation. In contrast, social investments have now become important. For policymakers, different approaches may be adopted to encourage firms to increase CSR investments. In some cases, policymakers can rely on firm initiatives instead of regulating or encouraging CSR activities.Originality/value– First, the authors empirically examine the bidirectional relationship between CSR investments and economic performance. Second, they clarify the determinants of CSR by specifying the investment function of each type of CSR. Third, they consider three types of CSR investments, with interrelations among them allowed in the model, and determine how each type affects firm performance.

AbstractBased on a large international sample, we show how the decision‐making power of CEOs in conjunction with prevailing institutional discretion relates to corporate resources allocated toward CSR strategy. First, especially with greater institutional discretion, powerful CEOs pursue exaggerated CSR strategies aiming at reputational gains for their private benefit, while not necessarily bearing the costs of their decisions. Second, such CEO‐induced CSR enhancements turn out to be defective CSR overinvestment, ultimately entailing a decrease in firm value. By complementing organizational factors with institutional characteristics, we refute previous contradicting empirical evidence regarding a significant CEO effect and show a conditional relation between CEO power and CSR choice. Our results are robust to alternative sample compositions, different variable definitions, and various methodological specifications.

PurposeThis study examines the influence of context on Taiwanese senior managers' corporate social responsibility (CSR) decisions. The study seeks to identify the current profiles of managerial CSR perspectives and organizational CSR investments in Taiwan. In particular, whether a non-Friedman perspective is more prevalent than a Friedman perspective and whether community-related CSR is more prevalent than other CSR practices in Taiwan remain unclear. The study also seeks to identify the relationship between managers' CSR perspective profiles and organizational CSR investment profiles in Taiwan.Design/methodology/approachThe sample was selected from the Taiwanese top companies list. Altogether, 150 valid responses from senior managers of 150 companies were returned.FindingsThe reported evidence shows that senior managers' Friedman/non-Friedman CSR perspective has a great influence in directing a firm's CSR decision in Taiwan. Managers holding the Friedman perspective are slightly more than those holding the non-Friedman CSR perspective, but both perspectives are popular. There is a tendency for firms to make either more or less investments in all CSR dimensions. A Friedman perspective tends to be associated with low CSR investments, and a non-Friedman perspective tends to be associated with high CSR investments.Originality/valueA major contribution of this study is to offer a different perspective from the Western view regarding CSR implementation in a Chinese-dominant culture society. The study extends the upper echelon theory that managerial CSR perspectives can be a driver of a firm's CSR decision-making. The study also offers further evidence for the institutional theory that CSR is contextually dependent.

AbstractThe aim of this study is to examine: (i) whether investment efficiency is associated with CSR performance and (ii) whether this relationship varies with the strength of investor protection. Using firm level data from Western European countries, we document a positive association between CSR score and investment efficiency. We further find that the effect of CSR on investment efficiency is driven by the areas Human Ressources, Business Behavior, Corporate Governance, and Human Rights. Finally, we find that the documented association is statistically and economically more significant in countries with stronger investor protection.

PurposeThe paper aims to examine whether corporate investment in social responsibility takes away from expected dividends.Design/methodology/approachThe article builds two hypotheses that are tested empirically through the analysis of 17,670 US firm‐year observations covering the period 1991‐2007. The tests are conducted in both univariate and multivariate settings.FindingsThe evidence supports the hypothesis that mature firms tend to invest more in corporate social responsibility (CSR). Specifically, firms investing highly in CSR tend to be larger, more profitable, and with greater earned (rather than contributed) equity. The evidence also supports the hypothesis that CSR investment does not subtract from dividends. Instead, CSR effort and dividend tend to increase together. Thus, CSR investment tends to be effected by companies who can afford it, and it does not lower value by lowering investors' expected payout.Practical implicationsThese results imply that spending resources on CSR does not lower the cash flows paid out to investors. When combined with the finding that CSR lowers the cost of equity, they also mean that CSR increases the value of a company's stock.Originality/valueThis is the first study that explicitly links CSR to the dividend flow.

Purpose
This study aims to explore how CEO narcissism drives investment in corporate social responsibility (CSR) and its mediating mechanism.


Design/methodology/approach
This study includes panel regression based on archival data.


Findings
CEO narcissism leads to signaling of organizational virtuous orientation that results in increase in CSR investment.


Originality/value
Relevance of CEO traits on CSR remains unexplored in emerging markets context, especially the underlying mechanism. This study uncovers these mechanisms.